The Termination Of Employment Contract By Mutual Agreement is a crucial document used in Belgian employment law when both employer and employee agree to end their employment relationship by mutual consent. This agreement type provides an alternative to unilateral termination and is particularly useful when parties wish to negotiate terms that benefit both sides while ensuring compliance with Belgian labor regulations. The document becomes relevant when employment parties seek an amicable separation, requiring careful attention to mandatory legal requirements, including proper notice periods, severance calculations, and social security implications. It must address specific Belgian legal requirements regarding language use, formal notifications, and social documentation. The agreement typically includes comprehensive provisions covering financial settlements, ongoing obligations, and various administrative requirements unique to the Belgian employment law context.
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1. Parties: Identification of the employer and employee, including full legal names, addresses, and relevant registration numbers
2. Background: Brief overview of the employment relationship, including start date and current position
3. Definitions: Definitions of key terms used throughout the agreement
4. Mutual Agreement to Terminate: Clear statement of both parties' voluntary agreement to terminate the employment relationship
5. Effective Date of Termination: Specification of the precise date when the employment relationship will end
6. Final Salary and Benefits: Details of final salary payment, including pro-rata calculations for partial months
7. Settlement Amount: Specification of any additional payments or severance package
8. Holiday Pay and Other Entitlements: Calculation and payment terms for accrued holiday pay and other outstanding benefits
9. Company Property: Requirements for returning company property and handling of company information
10. Confidentiality: Ongoing obligations regarding confidential information
11. Tax and Social Security: Clarity on tax treatment and social security implications of payments
12. Full and Final Settlement: Mutual release of claims and waiver of rights
13. Governing Law: Confirmation that the agreement is governed by Belgian law
14. Signatures: Execution section including date and signatures of both parties
1. Non-Competition Clause: Restrictions on future employment, if applicable and agreed (subject to Belgian law restrictions)
2. Outplacement Services: Details of any outplacement support being provided, mandatory for employees entitled under Belgian law
3. Stock Options/Share Plans: Treatment of existing equity compensation arrangements
4. Reference Provision: Terms regarding future employment references
5. Insurance Continuation: Details about post-employment insurance arrangements if applicable
6. Ongoing Cooperation: Terms for employee assistance in transition or future matters
7. Communications: Agreed approach to internal and external communications about the departure
8. Legal Assistance Costs: Provisions for payment of legal fees if agreed
1. Schedule 1 - Payment Calculation: Detailed breakdown of all payments including final salary, severance, and benefits
2. Schedule 2 - Company Property Inventory: List of all company property to be returned
3. Schedule 3 - Benefits Summary: Detailed list of benefits and their treatment post-termination
4. Schedule 4 - Certificate of Employment: Draft of the official employment certificate required under Belgian law
5. Schedule 5 - Social Documents: Templates for required social documents including C4 (unemployment certificate)
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